Improvements in SMR Modular Construction through Supply Chain Optimization and Lessons Learned
Affordable energy is a critical societal need. Capital construction cost is a significant portion of nuclear energy cost. By controlling and reducing cost, companies can build more competitive nuclear power plants and hence provide access to more affordable energy. Modular construction provides an opportunity to reduce the cost of construction, and as projects scale up in number, the cost of each unit can be further reduced. The objective of this project was to advance design and construction methods for manufacturing Small Modular Reactors (SMRs), and in particular to improve modular construction techniques and develop best practices for designing and operating supply chains that take advantage of these techniques. The overarching objectives were to accelerate the construction schedule and reduce its variability, reduce the cost of construction, reduce interest costs accrued during construction (IDC), and thus enhance the economic attractiveness of SMRs. Our fundamental measure of merit was total capital investment cost (TCIC). To achieve these objectives, this project developed a decision support system, EVAL, to support identifying, addressing, and resolving or ameliorating challenges and deficiencies in the current modular construction approach. The results of this effort were consistent with the facts that the cost of a construction activity is often smallest when accomplished in the factory, greatest when accomplished at the construction site, and at an intermediate level when accomplished at an assembly area close to the construction site. Further, EVAL can aid in providing insight into ways to reduce waste, improve quality, efficiency, and throughput and reflects the fact that the more done early in the construction process, i.e., in the factory, the more upfront funding is required and hence the more IDC will be accrued. The analysis has lead to a better understanding of circumstances under which modular construction performed mainly in the factory will result in lower expected total cost, relative to more traditional, on-site construction procedures. Further, we anticipate that EVAL can be used to gain insight regarding what role standardization can play in order for modularization to be most effectively defined. Such results would ultimately benefit all (small and large) new nuclear construction.